Large banks failing to adapt to “the age of the individual”
A December 2017 ProfessionalAdviser.com discusses how large banks have found it difficult to adapt to what some people call “the age of the individual”.
Thanks to technology, all kinds of services have been created that are more and more bespoke, adapting to an individual’s needs.
Bridging finance lenders have the ability to adapt to complex lending applications. They look at the whole loan application and can understand and make assessments on loan applications in a flexible way that many large banks cannot. They can often provide loans for projects that large banks have turned down because of their rigid lending criteria.
Rumours that large banks will rely more and more on artificial intelligence and robotic devices concern many business owners. Though technology promises to be able to more easily adapt to the individual, there is a fear that automated systems will not have a human touch and empathy.
Alternative lenders use technology, but they tend to rely more on personal relations and face-to-face meetings. They want to build a long relationship with borrowers, and to be their first choice when requiring finance.
Bridging finance brokers also work on a personal level getting to know their clients so that they can recommend the most suitable lender for their individual requirements.
Bridging finance lenders, brokers and alternative lenders are aiming to find the right balance between using artificial intelligence and human advisors to best serve borrowers. Alternative finance only represents 12% of the small business lending market, but this is expected to grow in the “age of the individual”.